Kim Anderson Talks About Surprising Grain Markets Following Crop Plantings ReportsThu, 05 Apr 2012 17:59:29 CDT
OSU Grain Marketing Specialist Dr. Kim Anderson says the markets presented a surprising mix this past week. He spoke with SUNUP’s Lyndall Stout on the markets’ odd gyrations in light of two reports which were released last week.
“We were concentrating on the plantings report. Corn came in at 95.9 million acres. We had expected 94.7, so about 1.5 million above expectations. Wheat came in below expectations at 55.9 million acres. We expected about 57.4. And soybeans came in at about 73.9 million acres which was below the trade estimate of 75.4.”
“You look at those numbers and you think, ‘Corn is going to be down strong. Wheat is going to be steady, maybe a couple of cents higher and beans pick up 15 to 20 cents.’
“What we saw was corn up the limit, 40 cents, on Friday, up another 12 on Monday, a total of 52 cents. Wheat was up 43 cents on Friday and beans were up 48 cents. The price increases were well above expectations.”
What caused the prices to go up?
Anderson says it was due to the fact that all the quarterly stocks reports were all below the trade’s expectations.
He says next week’s markets could be interesting as well given that the supply and demand estimates will be released next Tuesday. He says we’re looking at lower ending stocks for all three commodities.
You can hear the rest of Dr. Anderson’s preview of his discussion on SUNUP this week by clicking on the LISTEN BAR below.
Other segments on SUNUP will include:
-- Brian Arnall discusses late-season nitrogen application to improve wheat yields, and preparation for summer crops. Joe Armstrong follows up with weed control advice in advance of spring planting.
--In the Mesonet report, Al Sutherland and Gary McManus explain what causes wheat lodging and report that Oklahoma is no longer under exceptional drought status.
--Kim Anderson analyzes this week's wheat price jump and previews the upcoming supply and demand estimates.
--In Naturally Speaking, Dwayne Elmore demonstrates how to trap Northern raccoons and keep them out of trash cans.
--Then, Marley Beem has tips on managing a pond for better fishing.
--In Cow-Calf Corner, Glenn Selk explains how to prevent calf scours.
-Finally, in Shop Stop, Randy Taylor and Wayne Kiner show us the differences in hand sprayer nozzles.
SUNUP can be seen on OETA stations at 7:30 Saturday morning.
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